VMware 2013 Annual Report Download - page 134

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applicable) shall not be made before the date which is six months after the Separation from Service (or
Retirement, if applicable). If payments to a Key Employee are delayed in accordance with this Section 9.6, the
payments to which the Key Employee would otherwise have been entitled during the six month period shall be
accumulated and paid in a single lump sum at the time specified in Section 6.01(a) of the Adoption Agreement
after the six month period elapses.
(a) A Participant is treated as a Key Employee if (i) he is employed by a Related Employer any of whose stock is
publicly traded on an established securities market, and (ii) he satisfies the requirements of Code Section 416(i)
(1)(A)(i), (ii) or (iii), determined without regard to Code Section 416(i)(5), at any time during the twelve month
period ending on the Identification Date.
(b) A Participant who is a Key Employee on an Identification Date shall be treated as a Key Employee for
purposes of the six month delay in distributions for the twelve month period beginning on the first day of a month
no later than the fourth month following the Identification Date. The Identification Date and the effective date of
the delay in distributions shall be determined in accordance with Section 1.06 of the Adoption Agreement.
(c) The Plan Sponsor may elect to apply an alternative method to identify Participants who will be treated as Key
Employees for purposes of the six month delay in distributions if the method satisfies each of the following
requirements. The alternative method is reasonably designed to include all Key Employees, is an objectively
determinable standard providing no direct or indirect election to any Participant regarding its application, and
results in either all Key Employees or no more than 200 Key Employees being identified in the class as of any
date. Use of an alternative method that satisfies the requirements of this Section 9.6(c) will not be treated as a
change in the time and form of payment for purposes of Reg. Sec. 1.409A-2(b).
( d) The six month delay does not apply to payments described in Section 9.9(a),(b) or (d) or to payments that
occur after the death of the Participant. If the payment of all or any portion of the Participant’s vested Account is
being delayed in accordance with this Section 9.6 at the time he incurs a Disability which would otherwise
require a distribution under the terms of the Plan, no amount shall be paid until the expiration of the six month
period of delay required by this Section 9.6.
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